Sunshine Cosmetics is evaluating five possible locations to build a factory & distribution center. Cost estimated from the accounting department are provided below. The annual demand is estimated to be 30,000 units.

data	location 1	location 2	location 3	location 4	location 5
fixed costs $	85,000	110,000	95,000	125,000	110,000
Direct material cost/unit $	4.14	4.05	5.05	4.50	4.50
Direct labor cost/unit $	12.45	13.80	11.80	12.60	13.75
Overhead/unit $	2.25	2.60	1.95	2.75	2.10
Transportation cost/unit $	.55	.65	.30	.83	.67

a. Which location provides the least cost for the estimated demand?

b. If the demand can be as low as 25,000 units and as high as 40,000 units, is the location selected in (a) the best choice? Explain your answer. (Hint: change the demand estimate and find the least cost location).